- Bitcoin experienced extreme volatility on November 9th, with its price briefly touching $38,000 before settling around $36,500, causing its market cap to increase by around $45B in one day
- The price surge led to over $440M in liquidations across crypto markets in 24 hours, with the majority occurring within the first few hours
- The volatility resulted in a major decrease in open interest on Binance and a shift in the exchange landscape, with CME becoming the largest exchange by open interest
Bitcoin experienced extreme volatility on November 9th, briefly touching $38,000 before settling around $36,500. This short-lived surge increased Bitcoin’s market cap from $715B to a peak of $740B. The day-to-day increase of around $45B was one of the largest one-day percentage changes in Bitcoin’s history.
Massive Liquidations Across Crypto Markets
The price surge was not without consequences. Liquidations in crypto markets surpassed $440M over 24 hours. In the span of an hour, liquidations reached $147M. Over 4 hours, liquidations hit $262M. After 12 hours, liquidations totaled $334M, and after 24 hours, liquidations reached $446M.
Shift in Exchange Open Interest to CME
The turbulence also led to a reduction in open interest by over 5%, wiping out $1B in Bitcoin open interest. Significantly, this resulted in a shifting landscape for exchange open interest. Chicago Mercantile Exchange (CME) has now become the largest exchange by open interest following a major decrease in open interest on Binance.
Bitcoin’s wild price swings on November 9th provide an interesting case study on crypto market volatility. While the brief surge increased Bitcoin’s market cap significantly, it also triggered a cascade of liquidations across exchanges. CME emerged as the dominant exchange by open interest after the dust settled. It seems Bitcoin’s penchant for volatility remains unabated.